A unique product that distinguishes our organization from other NBFIs is Solidarity Group loan. Solidarity Group loan is designed for a Group, voluntarily formed of 3-50 micro business entrepreneurs who live or work in the same community, area and marketplace. They are united under one purpose of doing business and improving their lives and they know and trust each other very well. In the Solidarity Group loan, collaterals are not required as group members guarantee each other. This very small and affordable loan provides the opportunity for our clients to buy equipment or stock to set up a micro and or small business. A bit of investment upfront may be all that is needed to remove the obstacles to self-sufficiency. Group members carefully choose their peer but support each other, share business and financial knowledge and other experiences in life.
As profits are made and loans are paid back, the funds are recycled to new borrower to get their business idea up and running. We reduce loan interest to clients perform well in managing their finance and maintain good repayment performance. VisionFund Mongolia has some other loans products beside Solidarity group loan, e.g. Individual loan. Loan officers who know the clients well, generally suggest suitable and most appropriate loan products to the clients.
Solidarity group loans include:
- Starter loan (in cooperation with WPF)
- Business loan (in cooperation with World Vision Mongolia ADP)
- Success loan
- Consumer loan
Individual loans include:
- Starter loan
- CWBO loan (supporting child well-being)
- Large loan
- Housing loans (in cooperation with World Vision Mongolia ADP)
- Car loan
Our partnership with World Vision demonstrates our full approach which we believe is not just for physical survival but living a rich and fulfilling life. World Vision improves the lives of children and their families through long-term commitment to their communities. And our microfinance services are integrated into the development of the work of World Vision who carry out development programmes in health, water, sanitation, education and economic development. Together we work to improve the lives of children living in poverty.
The full impact of people moving away from long-term poverty is significant when World Vision and VisionFund interventions are combined.
Projects implemented with World Vision Mongolia:
- Housing loan for households living in a ger district
- Equipment loan to support micro entrepreneurs
- Coal loan which is the main need in harsh winter period
- Vegetable and beekeeping loan
- Green-house loan to support farmers
- Group loan for business groups of World Vision Mongolia
- Group loan for members of Vocational Training Center